Unicredit Bank AG v Euronav NV [2023] EWCA Civ 471 (04 May 2023)

Unicredit Bank AG v Euronav NV [2023] EWCA Civ 471 (04 May 2023)

The Court held that the bill of lading, initially a mere receipt in BP's hands as charterer, did not automatically become a contract of carriage upon novation of the charterparty. However, upon indorsement to the Bank after discharge, section 2 of COGSA operated to vest rights of suit in the Bank as if a contract of carriage existed on the terms of the bill. Despite this, the Bank's claim failed on causation: the Bank would have permitted discharge without production of the bill, and any breach did not cause the loss.

Citation
[2023] EWCA Civ 471
Parties
Claimant (appellant): UNICREDIT BANK A. G.; Defendant (respondent): EURONAV N. V.
Jurisdiction
England and Wales
Judgment Date
04 May 2023
Procedural Posture
Appeal From High Court (commercial Court) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Bills of Lading, Charterparty Novation, Carriage of Goods by Sea, Security Interests, Trade Finance
Commercial Law Shipping Law Contract Law Bills of Lading Charterparty Novation Carriage of Goods by Sea Security Interests Trade Finance

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 9 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

UNICREDIT BANK A. G.

Claimant (appellant)

EURONAV N. V.

Defendant (respondent)

Procedural Posture

Appeal From High Court (commercial Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Status of bill of lading in hands of voyage charterer after charterparty novation
  2. 2 Whether contract of carriage is contained in or evidenced by bill of lading post-novation
  3. 3 Effect of indorsement to bank after discharge without bill

Ratio Decidendi

The Court held that the bill of lading, initially a mere receipt in BP's hands as charterer, did not automatically become a contract of carriage upon novation of the charterparty. However, upon indorsement to the Bank after discharge, section 2 of COGSA operated to vest rights of suit in the Bank as if a contract of carriage existed on the terms of the bill. Despite this, the Bank's claim failed on causation: the Bank would have permitted discharge without production of the bill, and any breach did not cause the loss.

Court Disposition

Appeal dismissed

Orders

  • Claim dismissed
  • No order for remittal